An Overview of the Features of Debit Card

How would you feel if your bank account had been hacked? It’s no longer safe to keep all of your money in the same place, so you should consider using a debit card to keep your money separate from your checking account and protected from potential theft. Read on to learn more about debit cards, what they can do for you, and why you should use one over credit cards.

A debit card allows you to use your checking account balance like cash. If you don’t have enough money in your checking account, you can use your debit card to pay the rest of the cost of your purchase, but this comes with fees that make debit cards even less useful than they seem at first glance. As with all financial products, it’s best to only use them if they fit your needs and goals.

Debit Card Number

The digits on your debit card number are also sequential, starting with 4 or 5. The first digit is known as an issuer identifier code and identifies which financial institution issued your card. Bank of America, for example, starts its numbers with 4; Capital One has 5. Digits two through six make up your account number. And digits seven through 12 are reserved for processing purposes—specifically so that those in possession of stolen cards don’t have an easy time making online purchases.

Card Number In Debit Card

The debit card number is just part of a 15-digit number that’s encoded on your card. It identifies your account to merchants and lets them process transactions for you. The other part of that 15-digit number is made up of numbers from your PIN or CVV/CVC code and several check digits (these are based on an algorithm used by Visa). When you swipe, tap, or insert your card into a POS system, it gets routed through Visa’s network—but your actual card number stays within its database. That way, only Visa has access to it—not stores you shop at or hackers snooping around in their systems.

Is it safe to use a debit card?

There are a lot of people who are apprehensive about using a debit card for fear that it won’t be safe to use. Rest assured, though, that debit cards are as safe to use as credit cards and your bank account is protected by federal regulations. Anyone can enter your personal information into an ATM and withdraw money from your account (if you don’t have an ATM pin), but if you use a debit card at a store or restaurant, it will only work if you enter the correct personal information – namely, your PIN and card number. While criminals may try to steal those two things to create counterfeit debit cards and withdraw money from your bank account, they cannot simply grab one out of your wallet without entering your PIN.

Is there a limit on how much I can spend with my debit card?

The average debit card limit is $2,500 and growing. However, a debit card can have a limit of as much as $5,000 or more. Keep in mind, though, that there are risks associated with having a higher debit card limit. For example, it’s easier to spend more money if you don’t physically see your cash being withdrawn from your account with a credit card. If you decide to go for a debit card with a high spending limit, set clear spending goals for yourself so you know when to stop spending. Also, keep tabs on your balance regularly by logging into online banking or checking your balance at an ATM.

Features of debit card

As a wallet-friendly alternative to carrying cash, credit cards can be extremely useful. But like debit cards, they have their own potential drawbacks. When you get a new card, it’s important to make sure you understand all of its features—both good and bad—before loading it up with cash or setting an expensive monthly budget. 

While some of these features will differ from bank to bank, all debit cards share these four basic characteristics: Spending Limit – Most debit cards have limits on how much you can spend in one transaction and over your card’s lifetime. ATM Use – With most debit cards, you can use them at ATMs to withdraw cash. However, not all banks offer ATM access with their cards and many that do charge fees for using out-of-network ATMs. Point of Sale (POS) Transactions – This is where things start getting tricky. Debit cards allow you to pay for goods at retail stores without having any money directly deposited into your account (which would happen if you used a credit card). However, if a store uses certain POS systems that don’t support debit transactions, there may be a delay before funds are transferred into your account. 

Conclusion

Debit cards have become one of the most popular forms of payment over the last several years, particularly among millennials. For those who don’t know, debit cards are plastic cards used to access money from a bank account, and they’re connected to the user’s account number and routing number. They can be used at various ATMs and traditional brick-and-mortar merchants; however, some downsides should be considered before deciding whether or not to get one.